Foreclosure Short Sale Addendum printable pdf download

This form has been NOT approved by the Colorado Real Estate Commission. It has been prepared by the Buyer

THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD

CONSULT LEGAL AND TAX OR OTHER COUNSEL BEFORE SIGNING.

FORECLOSURE SHORT SALE ADDENDUM

TO CONTRACT TO BUY AND SELL REAL ESTATE DATED ______________

1. LANGUAGE OF THE AGREEMENT: If this Box is checked

Seller affirms that he/she is fluent

in English and that English is the language principally spoken at home. If this is not the case, Seller

requests that this Agreement be translated into __________________.

2. PURCHASE PRICE. Notwithstanding the stated purchased price in the attached agreement, the

Purchase Price shall be equal to but not greater than the funds necessary to release certain liens as

determined by Buyer. Seller acknowledges that the Property is highly leveraged and that the

property has very little, if any equity beyond the liens against the property. Seller understands that

in negotiating with the lien holders buyer may have to adjust the purchase price several times and seller

authorizes buyer to change the price on the contract without his signature or initials.

3. Seller is currently in default of loans and/or other obligations that are secured by liens on the Property

and is unable to make up back payments and/or continue making further payments.

a. The Buyer may attempt to negotiate a short pay (a.k.a. “short sale”) with the owners of the

liens on the property and/or pay such lien holders an agreed upon amount to release said liens from the

Property. Accordingly, the purchase price shall be equal to the amount Buyer, in Buyer’s sole

discretion, agrees to pay for those releases. Seller shall receive a net balance of $0.00, and this amount

shall be reflected on the HUD-1 settlement statement at closing. Seller understands that if the lien

holders accept a short sale, this may not relieve Seller for personal responsibility for the underlying

debts and that any forbearance or forgiveness of debt by lien holders may result in a taxable gain to

Seller.

b. The Seller, upon execution of this Agreement, shall execute a written authorization for Buyer

to contact any lien holder with an interest in the Property to negotiate a release of that lien. Seller

understands that Buyer will not be negotiating liens on Seller’s behalf, but on Buyer’s own accord, and

Buyer has not made Seller any promises, guarantees or representations about his ability to complete this

task, save the Seller’s credit or stop the foreclosure process. Seller understands fully and completely

that if Buyer is not able to negotiate the short sale or release of liens, said lien holders may proceed with

or complete the foreclosure of the property. Buyer may terminate this Agreement at any time if in

Buyer's sole discretion Buyer is unable to negotiate a satisfactory payoff or release of any lien or

encumbrance burdening the Property.

c. As part of this transaction and in consideration of the Purchase Price, Seller shall transfer to

Buyer any and all of Seller’s rights to, but not liabilities for, the current tax or insurance escrows and

this amount shall not be credited to Seller at Closing. Unless assigned in a separate document, this

Foreclosure Short Sale Addendum